OSAP repayment strategy

I have just received a letter regarding paying my OSAP loans. I am current on a 12-month internship (possibility to extend an extra 4 months) and will be going back to finish my degree September 2018.

I have about $27k worth of loans to pay

My interest rate is 5.7%

my monthly payment is about $320

I take home about $3000 a month form my internship (another $1000 to $500 from serving)

My goal is to have OSAP paid off by the time I graduate.
What would be a good strategy to pay it off? I'm thinking of simply increasing my monthly payment to $500 for the duration of my internship
When I go back to school, I no longer have to make payments and a portion of the loans no longer incur interest. During this time, I plan to continue serving and saving enough to pay the rest of my loan lump sum at graduation.

why so eager to pay off low interest loans? Since OSAP interests are tax-deductible, assuming you will be paying 30% income tax, that's effectively a 4% interest rate. Might as well slow down the payments and invest your savings in a more aggressive index portfolio (80% equity and 20% bond).

why so eager to pay off low interest loans? Since OSAP interests are tax-deductible, assuming you will be paying 30% income tax, that's effectively a 4% interest rate. Might as well slow down the payments and invest your savings in a more aggressive index portfolio (80% equity and 20% bond).

For me, rather than increasing monthly payment via their portal, I pay an extra bill through my bank account every month.
This allows me to not have to worry about asking them to change monthly installment again if things go south on my end. Oh and I contribute a fixed amount for index investing as well

I have just received a letter regarding paying my OSAP loans. I am current on a 12-month internship (possibility to extend an extra 4 months) and will be going back to finish my degree September 2018.

I have about $27k worth of loans to pay

My interest rate is 5.7%

my monthly payment is about $320

I take home about $3000 a month form my internship (another $1000 to $500 from serving)

My goal is to have OSAP paid off by the time I graduate.
What would be a good strategy to pay it off? I'm thinking of simply increasing my monthly payment to $500 for the duration of my internship
When I go back to school, I no longer have to make payments and a portion of the loans no longer incur interest. During this time, I plan to continue serving and saving enough to pay the rest of my loan lump sum at graduation.

Thanks guys!

Do you have money saved up already for your last year of school? If not I recommend saving as much as you can for your last year of school because your next year OSAP will be impacted by your earnings now. You may not qualify for osap at all or get a reduced amount based on how much you earn now. I suggest looking into that.

why so eager to pay off low interest loans? Since OSAP interests are tax-deductible, assuming you will be paying 30% income tax, that's effectively a 4% interest rate. Might as well slow down the payments and invest your savings in a more aggressive index portfolio (80% equity and 20% bond).

For student loans, I ride it out as long as I can. 5.67% isn't a very high interest rate anyways and as others have said, it's a tax credit. Also, make sure you apply for Repayment Assistance Plan. Based on your income, the government may pay a portion of your interest to drive down your monthly payment, driving cost down. Then just pay extra every month to match what you would have been paying.